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tv   Business Briefing  BBC News  January 23, 2018 5:30am-5:45am GMT

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this is business briefing. i'm samantha simmons. in his first trade move against asia, president trump slaps tariffs on solar panels and washing machines. and i'm sally bundock in davos. business and political leaders are gathered to try to talk about a shared future in a fractured world. and on the markets, it's very upbeat mood in asia as you can see and on the markets, it's very upbeat mood in asia as you can see and the dow once again closed at a record high. the prospects for the global economy are at their brightest in almost decade, that's according to both business leaders and the international monetary fund, who have launched their latest forecasts as the world economic forum gets under way in davos. it's where the world's business leaders and top politicians push
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for greater trade links and investment. the imf has increased its growth predictions for this year and next to 3.9%. it says that reflects growing momentum and president trump's recent us tax reforms. the imf says the good news has been well spread out with 120 countries, representing 75% of the world economy, seeing stronger growth in 2017. business leaders have noticed it too. 57% of the world's leading chief executives believe growth will improve over the next year according to a survey by the consultants pwc. and that's been reflected on stock markets around the world, which have repeatedly set record highs since last year's davos gathering. let's get more on this story from sally, who's in place in davos. thanks a lot, samantha. we have
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plenty of snow here, that's for sure, it is still falling, the forecast is it may stop today, i imagine the organisers are hoping it will because it's been quite a logistical mission to try to clear the literal metres of snow piling up all over this resort. it's stunning, though, and a great setting for the world economic forum where many are gathered here this year in terms of political leaders but also business leaders and chief executives. also people here from non—government organisations, from hollywood, you name it, they all seem to be gathered here today. what's on the agenda? we have narendra modi, the indian prime minister, kicking things off officially in a few hours with his speech, followed by many others, including the likes of the canadian prime ministerjustin trudeau, they are some of the high profile speakers today. as you mentioned, samantha, pwc has come
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out with its analysis of what company bosses are thinking right now because as we heard from the international monetary fund, there isa international monetary fund, there is a very rosy outlook certainly in the short term for the global economy. so with that in mind, what's on the minds of company bosses? i would like to introduce to you bob moritz, the global chairman of pwc in diverse, davos andfi to s, f . , ,, good to you. 3‘13t 913 mernnc c31"! t3 m39“: you 3he3et et‘e3 “3"th c33"! et3 m39“: you have 3333 et‘e3 m3'hh3 c333 et3 m39“: you have survey many company bosses all over the world and you have come through with some very strong results in terms of what they're thinking is in the next 12 months. we survey 1300 ceos from around 85 countries, which was representing regions of the world and different segments of business, and the optimism is off the charts, a record yearin optimism is off the charts, a record year in terms of the level of optimism in its economy and prospects for the next 12 months, it's the highest level we've ever had and it is consistent worldwide
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region to region, something we haven't seen in the last 20 years of the survey. why is that? many argue that this is a cyclical recovery, ten yea rs that this is a cyclical recovery, ten years since the financial crisis and therefore we are in the good times but it might not last long. and therefore we are in the good times but it might not last longm is clear many of the ceos see the level of optimism coming out of three things, one is the macro trends are still there in terms of demographics, rise of the middle—class, especially when you look at the asia—pacific and as an opportunity. secondly you have this longevity around gdp growth and the positive aspects and we haven't had too many shocks to the system economically over the last few years. third every region worldwide is relatively stable. 0ver years. third every region worldwide is relatively stable. over the last five years last year we had brexit and what came out of the combination of the europe and the uk, and we'd had other issues in recent years, so there are issues but the challenges dealing with the results. are we surprised the stability is there given the environment we are in and
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we have the trump administration that many had doubts about and were concerned about in terms of his ideas with regard to trade, brexit you mentioned, but also so many elections in europe and let's mention north korea. when you factor all those elements in, it is quite surprising to think where we are now? it is, but here's the situation, when you look at the threats everyone is talking about and worrying about, when you ask the ceos what they're worried about today, in the past we have talked about business risks, the ability to access capital, the stability of the marketplace, those have dropped down in terms of priority. now you have these uncontrollable outside of the realm of the ceo issues. if we get specific about the different areas of the world, many company bosses you said were talking about investing and hiring more people, where is that? is that mainly in the us or is it beyond? it's come across
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oi'i us or is it beyond? it's come across ona us or is it beyond? it's come across on a worldwide basis, the ceos aren't as optimistic as the global economy, their level of willingness to invest in employment up a bit as well and it's coming out across the world as you look at tech companies, healthcare companies and service companies, they are the three most opportunity for growth in employment. is the uk exception to that rule because of brexit? the uk optimism is less, it's one of the lower countries in terms of confidence over the next 12 months to deliver results as well as their concerns over the next three years. everyone is looking to two to three years as we look at the negotiations with europe over brexit. bob, really interesting, thanks for your time. bob has a thicker skin than i, he is just in his suit, i'm wrapped up warm, rather chilly here! samantha, i will see you later! stay warm, sally, speak to you later! us president donald trump has approved tariffs on imported solar cells and large household washing machines. it's widely seen as his first trade move against asia. let's go to our asia business
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hub where rico hizon is following the story. rico, what has the reaction been in asia? i can't ican't imagine i can't imagine it is too positive? a big setback for chinese zola manufacturers and washing machine producers in south korea. visa the two countries and sectors that will be most heavily affected and both countries have criticised the tariffs. china's commerce ministry expressed strong dissatisfaction, saying the us decision further deteriorates the global trade environment. as for south korea, environment. as for souflnloceac and lg compete in the samsung anerg'cempete lathe machine samsung 3a3tg'cempete lathe machine market with us washing machine market with us companies like whirlpool. samsung electronics said the decision was a great loss for american consumers and workers and currently its stock
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price is trading lower more than 2% and lg stock also in negative territory by 4% on the korea stock exchange on that news. as for whirlpool, for years they have sought protection against cheaper imports from south korea and mexico, they have welcomed this move, saying they have welcomed this move, saying the initiative will result in new manufacturing jobs in ohio, kentucky, south carolina and tennessee. let's see how this plays out going forward. the reaction in davos will be interesting once president trump gets their. now let's brief you some other business stories. both houses of the us congress have approved a temporary spending measure to fund the federal government, ending a three—day government shutdown. the bill will fund federal services for another 2.5 weeks. democrats agreed to drop their objections in return for republican assurances about immigrants facing deportation. netflix shares surged on monday after it delivered strong results for the last three months of 2017. its profits are up, but what pleased investors is the solid subscribers number. netflix added over eight million of them in the quarter.
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the company's market capitalisation has now crossed $100 billion. bacardi will buy tequila maker patron in a deal worth around $5 billion as it looks to expand in the us and cash in the growing taste for the mexican spirit. sales of tequila have been climbing in recent years, while other alcohols like vodka and brandy have declined. the deal will make barcadi the second largest spirit company in the united states. remember him? kim dotcom is the founder of file—sharing site megaupload and he's fighting extradition to the us to stand trial for copyright infringement and fraud. he's suing the new zealand government for billions of dollars in damages over his arrest in 2012. mr dotcom says an invalid arrest warrant negated all charges against him. that's it for business briefing this hour. but before we go, here are the markets and its green
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across the board, and i must tell you that the nikkei, which you can't see here for technical reasons, is trading at record levels. the dow closed on record highs last night as well. up next, news briefing, we'll take you through the stories making headlines in the global media today including. four in five obese children face life—long battles with ill—health according to a new report by the royal college of paediatrics and child health. it says westminster is still lagging behind scotland and wales in prioritising the issue. the government insists it has world—leading plans in place. here's our health correspondent,
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dominic hughes. being healthy when you're young makes a big difference to your chances of good health in later life. atan life. at an after—school gym session in manchester, sisters grace and mia, both of them enjoy the rewards a workout gives them. fitter, confident, just happier with yourself, yeah. personally ijust feel good about myself, think i've done well and achieve better stuff. but when it comes to the health of children and young people, the report out last year showed the uk was lagging behind other european nations. so one year on, is the situation improved ? in scotland, there's praise for a new mental health scare, strategy and better support for mothers who breastfeed. likewise in wales where
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a smoking ban in playgrounds has been introduced. but a report says public cuts in health in england are hitting children services hard and theissue hitting children services hard and the issue doesn't get the same political attention. a healthy child makes a healthy adult. a healthy aduu makes a healthy adult. a healthy adult is a productive adult and a productive adult population is good for the economy. it makes no sense whatsoever to not really target the preservation of health in childhood. the department of health in england says it has world leading plans in place to combat obesity and improve mental health and the sugar tax is funding breakfast clubs and sports. but this report report warns if our children and young people don't get a good healthy start in life, they are more likely to struggle as adults. dominic hughes, bbc news. coming up at 6am on breakfast, dan walker and louise minchin will have all the day's news, business and sport. this is the briefing from bbc news. the latest headlines: president trump has signed a bill ending the us government
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shutdown until february 8th. the deal was approved after republicans agreed to try to solve the fate of thousands of migrants brought to the us illegally as children. two journalists are appearing in court in myanmar facing spying charges. they had been reporting on the rohingya refuge crisis. two journalists are appearing in court in myanmar facing spying charges. they had been reporting on the rohingya refuge crisis. three executives have resigned from the governing board of usa gymnastics after claims the organisation ignored complaints of sexual abuse made against former tea m sexual abuse made against former team doctor larry nassar. 0ur business story on the bbc website, tesco will cut 1700 shopfloorjobs across its branches and warehouses as part of its turnaround strategy for the company. want to bring you a bit of breaking news, charing cross station here in london will remain closed as a precaution until further notice because of a gas leak in a nearby road.
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around 1,500 people were evacuated from around the area last night and currently the cause of the leak is not yet known. now it is time look at the stories that are making the headlines in media across the world. we begin with the front page of the guardian here in the uk. its lead story has a worrying warning — it says a destructive cyber attack on britain's infrastructure is expected within two years, so say the bosses of the national cyber security centre. to the business pages of the south china morning post, and it reports that we chat‘s store in shanghai with no checkout or cashiers, had more than 30,000 customers over the weekend — outdoing rival amazon's unmanned shop. "if you're obese at 11, you'll be obese for life": a worrying health report, the lead story for the daily telegraph here in the uk. the sun covers calls by its owner rupert murdoch that facebook should pay to feature news stories. he says reports from established media outlets are increasing
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facebook‘s value. the times with a holiday horror story. japanese tourists who were charged more than $1300 for a meal in venice, but what happened when they called the police? the los angeles times covers a story on its own doorstep. minnie mouse finally gets a star on the hollywood walk of fame, the paper points out it's a0 years after micky. so let's begin. with me is jane foley, senior fx strategist for rabo bank. welcome to you, thank you very much for coming in. we're starting with the guardian and is warning that it is just the guardian and is warning that it isjust a the guardian and is warning that it is just a matter of time before the uk suffers a major cyber attack. it is more details this. this is exactly what they are saying, it is a matter of when,
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